Tether Holds 75,354 Bitcoin, Passes Major Security Audit
Tether Builds Bitcoin Reserve | Image: WorldSpectrum/Pixabay
Key Takeaways
- Tether now possesses 75,354 Bitcoin after accumulating more for its reserves.
- The company recently cleared the System Organization Control (SOC) 2 Type 1 audit for security compliance.
- Meanwhile, Whale Alerts pointed towards an 80m USDT transfer from Tether Treasury to an unknown wallet.
Tether has become the seventh largest Bitcoin holder after adding 8,888 BTC to its reserves. The addition brought its total closer to 75,400 BTC, with the development part of an ongoing strategy to build stablecoin reserves. Additionally, the company recently completed the System Organization Control (SOC) 2 Audit Type 1 for security standards.
Tether Adds Bitcoin to Reserves
After the news of the move, Whale Alerts noted that 80 million USDT, worth around $79.96 million USD, moved from the Tether Treasury to an unknown wallet.
As Tether continues to rebrand its reputation towards maintaining reserves, it previously announced that it will partially divert operational profits for Bitcoin purchases.
The stablecoin issuer said in a May 2023 release: “Tether will regularly allocate up to 15% of its net realized operating profits towards purchasing Bitcoin (BTC).”
According to Bitinfocharts , Tether’s Bitcoin balance is valued at around $5 billion. Meanwhile, a January audit report by BDO placed Bitcoin holdings at $2.8 billion on the balance sheet.
The accumulation represents 0.3831% of all BTC. The address first received Bitcoin on September 30, 2022, and it recorded its most recent transaction on April 1, 2024. Since its creation, there have been 49 incoming transactions (ins) and 38 outgoing transactions (outs).
New Audit Report
Since Tether’s faceoff with the regulators for lying about Bitcoin reserves, Tether has been publishing audit reports around its reserves and beyond.
On April 1, it announced a security standard audit of SOC 2 Type 1, an assessment developed by the American Institute of Certified Public Accountants (AICPA).
The audit is reportedly considered the gold standard in security compliance. It will focus on five critical “trust service principles”. These are Security, Availability, Processing Integrity, Confidentiality, and Privacy.
The SOC 2 Type 1 audit examines the company’s implementation of robust IT controls. These include firewalls, intrusion detection, and enhanced authentication protocols.
Considering Tether is a large player, with a market cap of around $105b and daily volumes surpassing $76b, its compliant rebranding was considered crucial.
Rebuilding Reputation
Tether is expanding Bitcoin reserves as it partially transfers operational net profits toward the purchase. It also recently completed the SOC 2 Type 1 audit as it rebrands itself in transparency, accountability, and security measures.
Considering Tether’s market size, the updates should be positive for the issuer.
